Zimbabwe banks to source offshore credit lines

Financial institutions have renewed plans to source offshore credit lines to sustain requirements by productive sectors of the economy.

Productive sectors are failing to increase capacity due to lack of capital, despite efforts being made to increase business confidence.

Bankers Association of Zimbabwe president, Dr Charity Jinya told government representatives, industrialists and economic decision makers at the recently held private sector – government meeting in the capital, that banks are also courting strategic external financiers to source funding for industrial recapitalisation.

"Efforts are being made to ensure we get the relevant funding to sustain the needs of industry and commerce," she said.

An economic commentator, Mr Shephard Kembo said high costs of capital are making it difficult for local firms to access loans from the banks.

"Surely the cost of borrowing is too high and where do you expect the industry to recapitalise under such circumstances indeed it is difficult," noted Mr Kembo.

Zimbabwe is experiencing foreign currency shortages resulting in long queues at banks.

The trend has also led to the growth of illegal cash dealers selling cash in the form of bond notes or the US dollars at a premium. - zbc